Perspectives

Ohio enacts municipal tax reform

Multistate tax alert | December 19, 2014

​On December 19, 2014, Ohio Governor Kasich signed Substitute House Bill No. 5 (“H.B. 5”), which creates uniform provisions applicable to Ohio municipal income tax regimes (municipal net profits tax).

​Substitute House Bill No. 5

On December 19, 2014, Ohio Governor Kasich signed Substitute House Bill No. 5 (“H.B. 5”),1 which creates uniform provisions applicable to Ohio municipal income tax regimes (municipal net profits tax). To address specific nuances in general income tax calculation and filing procedures among the more than 600 municipalities, the bill applies uniform standards in the following areas:

  • Taxation of pass-through entities
  • Net operating loss carryforwards
  • Consolidated corporate returns
  • Withholding for nonresident employees
  • Various procedural items

In this Tax Alert we summarize the significant law changes contained in H.B. 5 that impact businesses. Unless otherwise specified in the discussion that follows, these changes are effective January 1, 2016.2

1 H.B. 5, 130th Gen. Assemb., Reg. Sess. (Ohio Dec. 19, 2014). A copy of the adopted law is accessible at: http://www.legislature.state.oh.us/bills.cfm?ID=130_HB_5.

2 Substitute H.B. 5, amending Ohio Revised Code (“ORC”) § 718.04.

​Multistate Tax alert archive

The Multistate Tax Alert Archive includes external tax alerts issued by Deloitte Tax LLP's Multistate Tax practice during the last three years. These external alerts highlight selected developments involving state tax legislative, judicial, and administrative matters. The alerts provide a brief summary of specific multistate developments relevant to taxpayers, tax professionals, and other interested persons.

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